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Journal of Dairy Science Vol. 54 No. 8 1134-1136
© 1971 by American Dairy Science Association ®
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Proposed Economic Formula (Model) for Deriving the Value of Cheese Milk

Roy A. Brog

Dairy Consultant, Dairy Monitoring of America, North Logan, Utah 84321

ABSTRACT

A mathematical model is derived for estimating the value of producer milk from market prices of Cheddar cheese and its associated by-products, butter and whey powder. With the formula one can compute the cheesemaking value of any selected producer's milk or the aggregate milk supply with protein and fat differentials. The yield factors are first derived and then coupled with market prices to estimate producer milk values.

The potential value and the limitations of the model are discussed.






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Copyright © 1971 by the American Dairy Science Association ®.